Equinor will submit the development plan for the second phase of the Johan Sverdrup project to the Norwegian Energy Ministry at ONS today.

The new plan raises the resource estimate for the entire Johan Sverdrup field to 2.2-3.2 billion barrels of oil equivalent (boe) from 2.1-3.1bn boe previously.

Production start-up for the phase 2 development is planned for the fourth quarter of 2022.

The first phase is nearly 80% complete, keeping the project partners on track to start production from the field in November next year.

Equinor said today it had managed to knock another £185 million off the overall cost of phase one. The investment estimate is now £8bn, a reduction of 30% on the initial budget.

Equinor chief executive Eldar Saetre said: “The Johan Sverdrup field is the largest field development on the Norwegian shelf since the 1980s.

“At plateau, the field will produce up to 660,000 barrels per day, with a break-even price of less than $20 per barrel and very low CO2 emissions of 0,67 kg per barrel.

“Johan Sverdrup is on track to deliver vast volumes of energy with high profitability and low emissions for many decades to come.

“Today we are announcing an increased resource estimate and we are reducing the total estimated investment for both Phase 1 and Phase 2 of the development by an additional £560 million since February of this year.

“Since 2015, we have reduced the total estimated investment for Johan Sverdrup full field development by more than £7.5bn.